
Contents
-
-
-
-
-
-
-
-
-
-
-
8.1 First and Second National Banks 8.1 First and Second National Banks
-
8.1.1 General Background and Powers 8.1.1 General Background and Powers
-
8.1.2 First Bank of the United States (1791–1811) 8.1.2 First Bank of the United States (1791–1811)
-
8.1.3 Second Bank of the United States (1816–1836) 8.1.3 Second Bank of the United States (1816–1836)
-
-
8.2 Creation of the Federal Reserve System in 1913 and Its Authority as Lender of Last Resort to Nonbanks 8.2 Creation of the Federal Reserve System in 1913 and Its Authority as Lender of Last Resort to Nonbanks
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8 History of Lender of Last Resort in the United States
Get access-
Published:June 2016
Cite
Abstract
The government successfully responded to the 2008 financial crisis through the Federal Reserve's use of its lender-of-last-resort (LLR) authority. The presence of a strong LLR is paramount to financial stability. The need for such a lender was the reason the Federal Reserve System was created. A strong and independent LLR is even more important than a strong and independent manager of monetary policy. A bad LLR policy could destroy the country in weeks, forcing huge losses of wealth and strong motives for revolt. This chapter discusses the creation of the First Bank of the United States (1791–1811) and Second Bank of the United States (1816–1836), federal banks that could loan to any borrowers, commercial as well as financial institutions, and ultimately foundered on the idea that it was improper for the US government to make loans to the private sector. It also details the creation of the Federal Reserve system in 1913 and its authority as LLR to nonbanks.
Sign in
Personal account
- Sign in with email/username & password
- Get email alerts
- Save searches
- Purchase content
- Activate your purchase/trial code
- Add your ORCID iD
Purchase
Our books are available by subscription or purchase to libraries and institutions.
Purchasing informationMonth: | Total Views: |
---|---|
August 2024 | 1 |
Get help with access
Institutional access
Access to content on Oxford Academic is often provided through institutional subscriptions and purchases. If you are a member of an institution with an active account, you may be able to access content in one of the following ways:
IP based access
Typically, access is provided across an institutional network to a range of IP addresses. This authentication occurs automatically, and it is not possible to sign out of an IP authenticated account.
Sign in through your institution
Choose this option to get remote access when outside your institution. Shibboleth/Open Athens technology is used to provide single sign-on between your institution’s website and Oxford Academic.
If your institution is not listed or you cannot sign in to your institution’s website, please contact your librarian or administrator.
Sign in with a library card
Enter your library card number to sign in. If you cannot sign in, please contact your librarian.
Society Members
Society member access to a journal is achieved in one of the following ways:
Sign in through society site
Many societies offer single sign-on between the society website and Oxford Academic. If you see ‘Sign in through society site’ in the sign in pane within a journal:
If you do not have a society account or have forgotten your username or password, please contact your society.
Sign in using a personal account
Some societies use Oxford Academic personal accounts to provide access to their members. See below.
Personal account
A personal account can be used to get email alerts, save searches, purchase content, and activate subscriptions.
Some societies use Oxford Academic personal accounts to provide access to their members.
Viewing your signed in accounts
Click the account icon in the top right to:
Signed in but can't access content
Oxford Academic is home to a wide variety of products. The institutional subscription may not cover the content that you are trying to access. If you believe you should have access to that content, please contact your librarian.
Institutional account management
For librarians and administrators, your personal account also provides access to institutional account management. Here you will find options to view and activate subscriptions, manage institutional settings and access options, access usage statistics, and more.